It’s said that every problem has a hidden benefit or profit point, that every challenge has a silver lining, and this is what is now being witnessed in Zambian Business environment. It is a typical attempt which is normal in a free market economy by the business community to take advantage of the coronavirus – COVID 19 to profit from the upsurge and spike in demand for hygienic sanitizers.
Following the health guidelines both from the world health organization – WHO and the Zambian ministry of health, that all public places should provide hygienic sanitizer, in an effort to fight the spread of coronavirus COVID-19, this has driven up the demand to levels never seen before and most retailers have hiked the prices to cash in on the increased excessive demand for especially the hand sanitizers. But the Competition and Consumer Protection Commission has issued a warning that all businesses engaged in this practice will be identified and punished.
Like every spike in demand and the ensuing rise in prices that follows as if obeying the age old basic economic theory of the relationship between demand and supply, some retailers have taken advantage of the situation and are pricing the hand sanitizer products excessively, as Zambia is a free market economy with no price controls.
This has a negative consequence that needs to be balanced, and if this excessive pricing goes uncontrolled, the price of hand sanitizers and other needed hygienic products such as medicated soaps and hand washers are not balanced with the need for them to be available to most citizens, it will end up defeating the purpose of the health guidelines. It may become unaffordable to most households and small businesses who are in the majority.
And when the Zambian Business Times – ZBT contacted Competition and Consumer Protection Commission – CCPC, the commission stated that this trend of excessive price hikes for hygienic sanitizers should be stopped, warning all Business players to adhere to the laid down regulation and laws.
CCPC told ZBT that the commission has since warned business outlets against the act. They said from the preliminary investigations conducted by the commission, it has been noted that some deceitful traders across the country are taking advantage of the current situation to overcharge on sanitary products such as masks, gloves and hand sanitizers to the detriment of consumers and undermine the fight against COVID 19.
In an exclusive interview with Zambian Business Times-ZBT, on March 20 2020, CCPC public Relations Officer Rainford Mutabi, said the Commission is appealing to all business outlets to desist from charging unreasonably high prices as this is against the law and affects public health.
‘‘In view of the foregoing pandemic, the commission through its inspectors across the country will ensure that all individuals and companies exacerbating such conduct are identified and punished. Although hand sanitizers are one of the convenient products of maintaining hygiene during this pandemic, consumers advised to use other hygienic products such as anti-bacterial soap, which are readily available in most retail outlets around the country,’’ said Mutabi.
Meanwhile, Mutabi revealed in a statement issued on the same day, that consumers are advised to report any of the enterprises or traders engaged in such conduct of excessive pricing of hygienic sanitizers, masks etc to the commission to take necessary action using the commission’s toll-free phone line 5678 on all mobile networks or by email; zcomp@ccpc.org.zm.
“Consumers are further urged to ensure that they obtain receipts for all such transactions and the receipts should be kept safely and submitted to the commission as evidence for investigation purpose”
Finance Minister Bwalya N’gandu demonstrating that all should wash their hands to prevent spread of COVID 19
“CCPC is a Statutory body whose existence has been constituted under the Competition and Consumer Protection Act No. 24 of 2010 following the repeal and replacement of the Competition and Fair Trading Act, 1994,’’ he revealed. Mutabi said that the objective of the Act places responsibility on the Commission to safeguard and protect the consumers against unfair trade practices that includes affair pricing.
